Financial Performance - For the three months ended June 30, 2019, the company reported revenue of HKD 15,350,000, a decrease of 2.57% from HKD 15,756,000 in the same period of 2018[11] - The gross profit for the same period was HKD 4,863,000, down 16.59% from HKD 5,832,000 year-over-year[11] - The company incurred a loss before tax of HKD 1,947,000 compared to a profit of HKD 1,471,000 in the previous year, indicating a significant decline in performance[11] - The net loss for the period was HKD 1,998,000, compared to a profit of HKD 1,124,000 in the same quarter of 2018[11] - The basic and diluted loss per share was HKD 0.21, compared to earnings of HKD 0.17 per share in the prior year[11] - Total comprehensive loss for the period amounted to HKD 1,979,000, compared to a comprehensive income of HKD 1,206,000 in the same period last year[11] - The company reported other income of HKD 393,000, which increased significantly from HKD 80,000 in the previous year[11] - Administrative expenses rose to HKD 6,948,000, up from HKD 4,054,000, reflecting increased operational costs[11] - The company experienced a foreign exchange gain of HKD 19,000, down from HKD 82,000 in the previous year[11] Revenue Breakdown - Revenue from new property construction was HKD 8,551,000, down 25.5% from HKD 11,397,000 in the previous year[40] - Revenue from renovation and maintenance of existing properties increased by 59.3% to HKD 5,537,000 from HKD 3,475,000[40] - The group's revenue for the three months ended June 30, 2019, decreased by approximately 2.6% to about HKD 15.4 million from approximately HKD 15.8 million in the previous fiscal period[67] - Group revenue decreased from approximately HKD 15.8 million for the three months ended June 30, 2018, to approximately HKD 15.4 million for the three months ended June 30, 2019, a decline of about 2.6%[70] Employee and Operational Costs - The total employee costs amounted to HKD 12,827,000, an increase from HKD 10,672,000 in the previous year[51] - Service costs increased from approximately HKD 9.9 million for the three months ended June 30, 2018, to approximately HKD 10.5 million for the three months ended June 30, 2019, an increase of about 5.7%[71] - General and administrative expenses increased from approximately HKD 4.0 million for the three months ended June 30, 2018, to approximately HKD 6.9 million for the three months ended June 30, 2019, an increase of about 71.4%[74] Tax and Financial Reporting - The income tax expense for the three months ended June 30, 2019, was HKD 51,000, a significant decrease from HKD 347,000 in the previous year[54] - The financial statements were prepared in accordance with Hong Kong Financial Reporting Standards and comply with the applicable disclosure requirements of the GEM Listing Rules[22] Corporate Governance and Shareholder Information - The company has complied with the corporate governance code as per GEM Listing Rules, with no deviations reported except for the insurance arrangement for directors[136] - The board consists of three executive directors and three independent non-executive directors as of the report date[143] - As of June 30, 2019, the company had issued a total of 960 million shares, with major shareholders holding approximately 49.07% of the total share capital[130] - Dr. Chen and Mr. Leung collectively control 471,072,000 shares, representing 49.07% of the company's ordinary shares[110] - The major shareholders, Dr. Chen and Mr. Leung, own approximately 68.2% and 31.8% of Wan Nian Property Development Limited, which holds 49.07% of the company's total share capital[118] Future Plans and Strategies - The company is committed to improving its financial performance and exploring new strategies for market expansion and product development[11] - The company plans to leverage the net proceeds from the share offering to secure more consulting engineering service contracts to strengthen its market position[67] - The management believes that the acceleration and increase in land supply for residential development will be a key driving factor for the construction engineering consulting industry in Hong Kong[67] - The company aims to expand its market share and consolidate its industry position through strategic initiatives and leveraging its experienced management team[67] Accounting Standards and Compliance - The adoption of HKFRS 16 "Leases" resulted in an increase in both assets and liabilities, affecting the timing of expense recognition in the income statement[28] - The cumulative impact of adopting HKFRS 16 on retained earnings as of April 1, 2019, was recognized as an adjustment to the opening balance[34] - The company has not applied the new accounting model to short-term leases and low-value asset leases as a practical expedient[34] Miscellaneous - The company did not recommend any dividend payment for the three months ended June 30, 2019, consistent with the previous year[61] - There were no significant acquisitions or disposals of subsidiaries or associates during the three months ended June 30, 2019[88] - The company has established a robust internal control system, leading to no insurance arrangements for directors' liabilities at this time[136] - The audit committee has reviewed the unaudited condensed consolidated financial statements for the three months ended June 30, 2019[142] - The company has adopted a code of conduct regarding securities transactions by directors, with no violations reported during the three months ended June 30, 2019[137] - No share options were granted under the share option scheme during the three months ended June 30, 2019, and there were no unexercised share options as of June 30, 2019[141] - The company has allocated funds for office infrastructure expansion and building information modeling upgrades, with a budget of HKD 5.2 million[101] - The company has also allocated HKD 4.7 million to support and expand its materials engineering and building restoration services[102] - The company reported a general working capital allocation of HKD 1.2 million[103]
WAC HOLDINGS(08619) - 2020 Q1 - 季度财报